HC Deb 04 December 1986 vol 106 cc778-9W
Dr. McDonald

asked the Chancellor of the Exchequer if he will publish in the Official Report a table showing (a) the proportion in percentage terms, (b) the amount in current prices and (c) the amount in constant 1985–86 prices of personal income taken by income tax and national insurance in 1986–87 for those at 2,000 per cent. of average earnings on the same basis as his reply of 26 March to the hon. Member for Blackburn (Mr. Straw), Official Report, column 530–36.

Mr. Norman Lamont

The figures are in the table.

Income tax and NIC at 2,000 per cent. of average earnings in 1986–87
£ per week £ per week at 1985–86 prices Percentage of gross income
Single
(i) Income tax 2,381.99 2,312.78 55.8
(ii) NIC 25.65 24.90 0.6
(iii)(i) plus (ii) 2,407.64 2,337.69 56.4
Married no children
(i) Income tax 2,366.76 2,297.99 55.5
(ii) NIC 25.65 24.90 0.6
(iii) (i) plus (ii) 2,392.41 2,322.90 56.1
Married couple both earning
(i) Income tax 2,203.18 2,139.17 51.6
(ii) NIC 51.30 49.81 1.2
(iii) (i) plus (ii) 2,254.48 2,188.98 52.8
Married couple with 2 children
(i) Income tax 2,366.76 2,297.99 55.3
(ii) NIC 25.65 24.90 0.6
(iii) (i) plus (ii) 2,392.41 2,322.90 55.9

Notes:

1. Income tax payments are calculated on the assumption that households have no other tax relief apart from the standard allowances. Earners, including working wives are assumed to pay Class 1 National Insurance contributions at the contracted-on rate. The figures for National Insurance contributions are financial year averages.

2. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence.

3. The married couple with both working is assumed to have joint earnings of 2,000 per cent. of average earnings. In calculating disposable income it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.

4. For the married couple with two children, the percentage column expresses taxes etc. as percentages of gross earnings plus child benefit. For this purpose, financial year averages are used for child benefit.